You need to check your lease and relevant state statutes and case law on the matter but typically in a situation where the home is still habitable you would reduce tenants rent by the reduction in value of the property, which is likely substantial when going from 3br/2ba to 2br/1ba. 

Transfer ownership of the property into an LLC (or some other legal structure) to reduce my personal liability2.

If you have desires to invest out of your own comfort zone, as long as you take the time to do a lot of due diligence prior, it will greatly reduce your exposure to the horror stories. 

I’ve known others who are OK with the ever changing laws because they’ve had long time tenants or ways of renting to friends / family members, reducing risk and liability. 

Have no clue what it entails to sell or price the house, have super crocodile bath breath, have no idea what upgrades are worth, have no clue what items of their house brings value and what items do not, and what items actually reduce value (a crappy pool, a desperately needed to be torn down shed) etc. etc.Although motivated sellers, they are in many aspects worse than a blind targeted lead where you have to argue and debate trying to convince them their house is really not all that!

That reallocation is done with a GL entry and it leaves us with accurate interest income totals which agree with what the servicer reports on the 1099-INT, and correctly reduces the asset value in line with the amortization schedule in the partial contract. 

I currently own a 2 family property that I will have paid off in a few years and starting to think about how to reduce taxes and maximize gains.  

My question is, for those who accept credit card payments or who have done so in the past, do you find that it reduces your delinquencies or creates more headaches and issues? 

That can reduce the late fees and extra interest and prevent FC costs, which will reduce the payoff when you sell.

I previously mentioned saving to invest and while I’m not “done” investing, I have recognized as of late that I’ve gotten a bit ambitious and need to sit out for a little while to build sufficient reserves and reduce debt.